An eight-year-old troublemaker must protect his house from a pair of burglars when he is accidentally left home alone by his family during Christmas vacation.

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After a divorced New York mother hires a nice old man to play Santa Claus at Macy’s, she is startled by his claim to be the genuine article. When his sanity is questioned, a lawyer defends him in court by arguing that he’s not mistaken.

Buddy (Will Ferrell) was accidentally transported to the North Pole as a toddler and raised to adulthood among Santa’s elves. Unable to shake the feeling that he doesn’t fit in, the adult Buddy travels to New York, in full elf uniform, in search of his real father. As it happens, this is Walter Hobbs (James Caan), a cynical businessman. After a DNA test proves this, Walter reluctantly attempts to start a relationship with the childlike Buddy with increasingly chaotic results.